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Dowlais Group PLC (GB:DWL)
LSE:DWL
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Dowlais Group PLC (DWL) AI Stock Analysis

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GB:DWL

Dowlais Group PLC

(LSE:DWL)

Rating:61Neutral
Price Target:
75.00p
▼(-5.06% Downside)
Dowlais Group PLC's overall stock score is driven by a combination of financial challenges and positive corporate developments. The company's financial performance is weak due to declining revenues and negative cash flow, but technical indicators suggest moderate bullish momentum. The strategic merger with American Axle & Manufacturing Holdings, Inc. and strong shareholder support are significant positives that could enhance future prospects.
Positive Factors
Cash Management
Free cash flow was better than analysts' estimates, indicating more efficient cash management than anticipated.
Operational Performance
The company's EBIT is 16% ahead of consensus expectations, driven by GKN Auto, indicating strong operational performance.
Revenue Generation
The company's sales exceeded both the expectations of analysts and consensus, showcasing better-than-expected revenue generation.
Negative Factors
Bookings and Supplier Trends
There were significantly lower new bookings for Dowlais, which aligns with trends seen in other supplier updates.
Guidance and Forecasts
Dowlais is now guiding to FY25 performance at the low end of guidance due to lower LVP and FX.
Stock Rating
The stock rating has been downgraded from Buy to Hold due to expected returns being less than 15% over a 12-month period.

Dowlais Group PLC (DWL) vs. iShares MSCI United Kingdom ETF (EWC)

Dowlais Group PLC Business Overview & Revenue Model

Company DescriptionDowlais Group PLC (DWL) is a prominent player in the manufacturing sector, specializing in the production and supply of advanced engineering solutions. The company operates in various sectors, including automotive, aerospace, and industrial engineering, providing a range of products and services that cater to the needs of these industries. Its core offerings include high-performance components and systems that are essential for the efficient operation of machinery and vehicles.
How the Company Makes MoneyDowlais Group PLC generates revenue through the sale of its engineering products and solutions to clients in the automotive, aerospace, and industrial sectors. The company's key revenue streams involve contracts with major manufacturers and suppliers in these industries, where it provides customized components and systems designed to meet specific performance and efficiency requirements. Additionally, Dowlais Group may engage in strategic partnerships and collaborations that enhance its market reach and technological capabilities, contributing to its earnings. The company's focus on innovation and quality ensures a steady demand for its products, supporting its financial performance.

Dowlais Group PLC Financial Statement Overview

Summary
Dowlais Group PLC is facing financial challenges highlighted by declining revenues, operational losses, and negative free cash flow. While the balance sheet shows some stability, the overall financial health is weakened by high leverage and consistent net losses. The company needs to address operational inefficiencies and enhance cash flow management to improve its financial standing.
Income Statement
45
Neutral
The company has experienced declining revenue with a decrease from 2023 to 2024. Gross profit margin has remained consistently low, and the net profit margin is negative, indicating ongoing losses. EBIT and EBITDA margins are weak, reflecting operational challenges.
Balance Sheet
55
Neutral
The debt-to-equity ratio shows moderate leverage, but the increasing net debt is concerning. The company has a reasonable equity ratio, which suggests some financial stability. However, declining stockholders' equity over the years is a potential risk.
Cash Flow
40
Negative
Free cash flow has turned negative, indicating cash outflows exceeding inflows. The operating cash flow to net income ratio is poor due to negative net income, highlighting cash generation issues. The free cash flow to net income ratio reinforces concerns about cash management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.34B4.86B4.59B4.12B4.13B
Gross Profit646.00M757.00M658.00M581.00M470.00M
EBITDA345.00M31.00M386.00M263.00M342.00M
Net Income-173.00M-501.00M-82.00M-302.00M-199.00M
Balance Sheet
Total Assets5.71B6.23B6.93B10.04B10.43B
Cash, Cash Equivalents and Short-Term Investments354.00M313.00M270.00M275.00M141.00M
Total Debt1.44B1.31B1.26B2.71B2.77B
Total Liabilities3.40B3.67B3.72B5.21B5.63B
Stockholders Equity2.27B2.53B4.93B4.80B4.78B
Cash Flow
Free Cash Flow-71.00M12.00M-12.00M55.00M205.00M
Operating Cash Flow120.00M307.00M210.00M223.00M390.00M
Investing Cash Flow-119.00M-262.00M-137.00M-115.00M-140.00M
Financing Cash Flow17.00M23.00M-100.00M26.00M-364.00M

Dowlais Group PLC Technical Analysis

Technical Analysis Sentiment
Positive
Last Price79.00
Price Trends
50DMA
71.75
Positive
100DMA
66.55
Positive
200DMA
64.16
Positive
Market Momentum
MACD
2.12
Negative
RSI
71.03
Negative
STOCH
86.10
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DWL, the sentiment is Positive. The current price of 79 is above the 20-day moving average (MA) of 75.07, above the 50-day MA of 71.75, and above the 200-day MA of 64.16, indicating a bullish trend. The MACD of 2.12 indicates Negative momentum. The RSI at 71.03 is Negative, neither overbought nor oversold. The STOCH value of 86.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DWL.

Dowlais Group PLC Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
£911.10M53.328.64%0.63%2.70%-51.35%
62
Neutral
£721.58M23.7816.35%3.42%16.66%-44.06%
61
Neutral
$17.60B14.14-5.40%3.04%1.49%-15.29%
61
Neutral
£1.03B-3.81%5.39%-8.09%82.87%
52
Neutral
£792.33M-37.46%-7.90%18.13%
49
Neutral
£662.62M890.75%0.49%2.62%-129.82%
45
Neutral
£440.20M-27.20%-14.37%-28.78%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DWL
Dowlais Group PLC
77.85
16.27
26.42%
GB:CVSG
CVS Group plc
1,228.00
103.32
9.19%
GB:XPS
XPS Pensions Group Plc
348.00
55.07
18.80%
GB:AML
Aston Martin Lagonda Global Holdings plc
73.15
-75.35
-50.74%
GB:THG
THG
28.54
-30.91
-51.99%
GB:MOON
Moonpig Group Plc
199.00
-10.57
-5.04%

Dowlais Group PLC Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Dowlais Group Reports Solid H1 2025 Performance Amid Market Volatility
Positive
Aug 7, 2025

Dowlais Group PLC reported a solid performance for the first half of 2025, despite a volatile market. The company achieved an adjusted operating profit increase of 5.3% to £154 million, driven by restructuring initiatives and performance improvements, despite a 1.6% decline in adjusted revenue. The automotive sector saw a slight decrease in revenue but an 11% rise in operating profit, while Powder Metallurgy faced a revenue decline due to lower volumes in Europe and North America. The company also announced a significant merger with American Axle & Manufacturing Holdings, Inc., which is expected to enhance global scale and technology capabilities, creating substantial long-term value for shareholders.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Dowlais Group and American Axle Approve Strategic Combination
Positive
Jul 22, 2025

Dowlais Group PLC announced that its shareholders have approved a recommended cash and share combination with American Axle & Manufacturing Holdings, Inc., which will result in a significant increase in scale and market presence. This strategic move is expected to create a global automotive leader with annual revenues of around $12 billion and offers substantial cost synergies, enhancing competitiveness and providing significant returns to shareholders.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Other
Dowlais Group PLC Announces Change in Major Holdings
Neutral
Jul 22, 2025

Dowlais Group PLC, a UK-based company, has announced a change in its major holdings. FIL Limited, a Bermuda-registered entity, has reduced its voting rights in Dowlais Group PLC from 5.02% to 4.9129%. This notification highlights a minor adjustment in the shareholder structure, which may have implications for the company’s governance and influence of existing stakeholders.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Regulatory Filings and Compliance
Dowlais Group PLC Announces Change in Major Holdings
Neutral
Jul 17, 2025

Dowlais Group PLC, a UK-based company, has announced a change in its major holdings due to an acquisition or disposal of voting rights by JPMorgan Chase & Co., a US-based financial institution. The notification indicates that JPMorgan Chase & Co. has reduced its voting rights in Dowlais Group PLC to below the minimum threshold, which could impact the company’s shareholder structure and influence. This change was officially noted on July 16, 2025, following the threshold being crossed on July 14, 2025.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £70.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Regulatory Filings and Compliance
Dowlais Group PLC Announces Changes in Voting Rights
Neutral
Jul 15, 2025

Dowlais Group PLC, a UK-based company, has announced a significant change in its voting rights structure due to the acquisition and disposal of shares and financial instruments by BNP Paribas SA. The notification reveals that BNP Paribas has reduced its total voting rights in Dowlais Group from 6.71% to 2.90%, which may impact the company’s shareholder dynamics and influence within the market.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
JPMorgan Chase & Co. Increases Stake in Dowlais Group PLC
Neutral
Jul 9, 2025

Dowlais Group PLC, a UK-based company, has announced a change in the voting rights held by JPMorgan Chase & Co., a major financial institution headquartered in the US. This notification follows an acquisition or disposal of voting rights, with JPMorgan Chase & Co. now holding a total of 6.075105% voting rights in Dowlais Group PLC. The increase in voting rights reflects a strategic move by JPMorgan Chase & Co. to strengthen its influence within the company, potentially impacting Dowlais Group’s governance and decision-making processes.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
Dowlais Group PLC Announces Change in Voting Rights
Neutral
Jul 3, 2025

Dowlais Group PLC, a UK-based company, has announced a change in its voting rights structure due to an acquisition or disposal by JPMorgan Chase & Co. The notification indicates that JPMorgan Chase & Co. now holds 5.920398% of the voting rights in Dowlais Group PLC, an increase from their previous position. This change in holdings could impact the company’s governance and decision-making processes, potentially affecting its strategic direction and stakeholder interests.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
BNP Paribas Increases Stake in Dowlais Group PLC
Neutral
Jul 2, 2025

Dowlais Group PLC, a UK-based issuer, has reported a change in major holdings due to BNP Paribas SA’s acquisition and disposal of voting rights and financial instruments. This notification indicates that BNP Paribas now holds a total of 6.710014% of the voting rights in Dowlais Group, an increase from their previous position of 5.008598%. This change in holdings could potentially impact the company’s governance and decision-making processes, reflecting BNP Paribas’s increased influence within the company.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Regulatory Filings and Compliance
Dowlais Group PLC Announces Total Voting Rights Update
Neutral
Jul 1, 2025

Dowlais Group PLC has announced that as of June 30, 2025, its issued share capital consists of 1,316,658,644 ordinary shares, each carrying one vote. The company does not hold any shares in treasury, meaning all shares have voting rights. This information is crucial for shareholders to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rule 5.6.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Regulatory Filings and Compliance
Dowlais Group PLC Announces Change in Major Holdings
Neutral
Jun 13, 2025

Dowlais Group PLC, a UK-based company, has announced a change in its major holdings due to an acquisition or disposal of financial instruments by Bank of America Corporation. This notification indicates a shift in the voting rights percentages held by Bank of America, increasing from 3.096842% to 4.249911%, which may impact the company’s governance and decision-making processes.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

M&A TransactionsShareholder Meetings
Dowlais Group Announces Increased Offer Price in AAM Acquisition Deal
Neutral
Jun 5, 2025

Dowlais Group PLC, in collaboration with American Axle & Manufacturing Holdings, Inc. (AAM), announced an increased offer price for its shares following the cancellation of shares held by the Melrose Employee Share Ownership Trust. This move is part of a strategic combination where AAM will acquire Dowlais, with shareholders receiving 0.0881 new AAM shares and 43 pence in cash per Dowlais share. The increased offer does not alter the total cash or share consideration by AAM, aside from minor rounding adjustments. The acquisition aims to strengthen AAM’s market position, with plans for a secondary listing on the London Stock Exchange. A special meeting for AAM stockholders is scheduled for July 2025 to approve the issuance of new shares.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £100.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Dowlais Group PLC Reports Change in Voting Rights
Neutral
Jun 3, 2025

Dowlais Group PLC, a UK-based company, has reported a significant change in its voting rights structure following an acquisition or disposal of voting rights by JPMorgan Chase & Co. The notification indicates that JPMorgan Chase & Co. now holds a total of 5.300941% of voting rights in Dowlais Group PLC, with a substantial portion through financial instruments. This change in voting rights may impact the company’s governance and strategic decision-making, reflecting JPMorgan’s increased influence in the company’s operations.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Dowlais Group PLC Announces Change in Voting Rights Structure
Neutral
Jun 3, 2025

Dowlais Group PLC, a UK-based company, has announced a significant change in its voting rights structure due to acquisitions and disposals by BNP Paribas SA. The notification reveals that BNP Paribas has crossed a threshold of 5% in voting rights, now holding a total of 5.008598% in Dowlais Group PLC. This change in holdings could influence the company’s decision-making processes and impact its strategic direction, given BNP Paribas’s increased influence.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £80.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Executive/Board ChangesShareholder MeetingsDividendsBusiness Operations and Strategy
Dowlais Group PLC Secures Shareholder Approval for Key Resolutions at 2025 AGM
Positive
May 21, 2025

Dowlais Group PLC held its 2025 Annual General Meeting where all proposed resolutions were approved by shareholders through a poll. Key resolutions included the approval of the company’s annual report, directors’ remuneration, a final dividend, and the re-election of several directors. Additionally, Deloitte LLP was re-appointed as auditors, and the board was granted authority for share allotment and market purchases. These approvals reflect strong shareholder support and provide the company with the flexibility to pursue strategic initiatives and maintain its governance structure.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £120.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Business Operations and StrategyRegulatory Filings and Compliance
Dowlais Group Sees Change in Major Holdings
Neutral
May 20, 2025

Dowlais Group PLC, a UK-based company, has announced a significant change in its financial instrument holdings. Bank of America Corporation has adjusted its position in Dowlais Group, reducing its total voting rights from 3.205089% to 2.651186%. This change reflects a shift in the financial landscape for Dowlais Group, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (GB:DWL) stock is a Buy with a £120.00 price target. To see the full list of analyst forecasts on Dowlais Group PLC stock, see the GB:DWL Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Dowlais Group Reports Q1 2025 Performance Amid Market Volatility
Neutral
May 8, 2025

Dowlais Group PLC reported a trading update for Q1 2025, indicating performance in line with expectations despite a challenging market environment. The company’s adjusted revenue saw a slight decline due to foreign exchange impacts and lower volumes in certain segments, although its operating margin improved. The automotive sector faced a decline in driveline revenue, while ePowertrain and the China joint venture showed growth. Powder metallurgy revenues decreased, particularly in Europe and North America. The company anticipates a weaker first half due to tariff impacts but expects recovery in the second half. Full-year performance is projected towards the lower end of guidance, with ongoing restructuring and performance initiatives expected to mitigate challenges.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 07, 2025